So is now the time to buy Tesla stock — 9.44% of which is sold short? I see four reasons to steer clear — most notably, Tesla’s profitability does not come from selling vehicles — it comes from selling tax credits to competitors. But I do not think that makes Tesla stock a great long-term investment. For the second quarter, selling tax credits enabled Tesla to “eke out a $104 million profit,” the Journal wrote. Every dollar of Tesla sales is valued at $11.23 — that seems high for a company that’s shrinking.

Source: Forbes July 23, 2020 12:08 UTC